Monitoring and measuring the financial health of the business is no easy task. It is quite challenging and can be quite difficult. Many mistakes and fraud have occurred due to a lack of knowledge in this area. Poor financial management can drive entrepreneurs right out of business. A part-time bookkeeper can help you avoid all the mistakes. A part-time bookkeeper ensures that your records are accurate, which is mandatory in itself. He will do this either by performing your bookkeeping in-house or help you find and hire the appropriate bookkeeping service to do the work for you.
Bookkeeping is a simple way to classify and record the financial transactions of your business. It can be done on paper or, more efficiently, using accounting software on a computer. The software will contain numbered pages with two columns. The left column is used to report the date, details of the transactions, and the other is used to record the amount of the transaction. Every business needs to keep a record of its transactions. Good record keeping not only helps with the preparation of financial statements but also helps with monitoring costs, expenses, and taxation. It also comes in handy if the business ever needs to obtain a loan. Good record keeping also helps with general planning for the business future.
Importance of Bookkeeping
Some companies may only consider outsourcing bookkeeping work only if they have to submit the necessary paperwork for goods and services tax (GST). However, a bookkeeping service caters to more than just simply keeping track of transactions and acts as a foundation of all accounting processes. Having professional accountants manage your bookkeeping ensures that the financial records are compliant with management policies, local laws, and regulations. Tracked records could also be utilized to derive valuable insights such as identifying areas of excessive spending. While the company can create financial statements from their records, engaging professional bookkeepers in Singapore can help the business focus on identifying and solving potential flaws in business operations and finances.
Though maintaining financial records of all transactions might sound simple, it requires a lot of attention to detail and is amply time-consuming. Furthermore, incorrect bookkeeping can lead to cash flow management issues and tax penalties. To save time and effort on complex accounting processes, engaging professional bookkeepers in one of the top accounting firms in Singapore can streamline the process. Not only will your records be well maintained, but it also provides additional benefits.
Maintaining a company’s finances is vital to its growth and progression. For this reason, it is crucial to ensure that bookkeeping is done accurately and in a timely manner, as this not only affects tax matters but also the company’s overall financial health. Bookkeeping also contributes to better business management.
Role of Professional Bookkeeping Services
In conclusion, professional accounting services contribute significantly to the growth and economic development of SMEs and are important in promoting entrepreneurship and improving corporate governance, and can help entrepreneurs to better understand the challenges they will face at various business stages. Thus, the provision of professional accounting services for companies can be crucial in planning and avoiding common failures. This article serves to raise awareness and aims to provide assistance to the government in considering the extension of professional accounting services for companies. Furthermore, it highlights the importance and significance of the role of professional bookkeepers in promoting business success and ultimately contributing to Singapore’s economic development.
The role of these intermediate professional accounting service providers is important, as businesses would be more susceptible to business failure if they were not adept at the practice of financial management to ensure the continued flow of cash within their businesses. Increased reliance from the business community in Singapore on intermediate professional accounting service providers would ensure expert stewardship in the field of financial and accounting controllership. This implies that there would be significant relationships between the provision of professional accounting services by expert stewardship and business success, especially so for start-ups and SMEs. The relationship between the provision of financial services and wealth creation is a positive one (in economic terms; a positive externality) so professional bookkeepers also contribute to Singapore’s economic development.
Benefits of Professional Bookkeeping Services
Actually manages the accounting of business in Singapore. This is something that few people expect to admit. Many convinced entrepreneurs themselves are perfectly capable of keeping their own books. While doing so, they oversee their expenses, revenues, and also pay their taxes. There are actually many entrepreneurs who sign up for their business loans. They are very capable. But few things are less effective than the company management the financial department of a small entrepreneur. This is due to the fact that the entrepreneur when working in own business has many other issues of the highest priority, such as customer attraction, customer service or employees. The administrative bureaucracy or work schedule is never-ending and that detracts from the entrepreneur processes to improve the company with the best customer service, the best products, and services. Finally, an entrepreneur can use professional for guidance or for the outsourcing of services, but often disputes the moment, especially if professional advice exceeds the capacity budget of the company.
Barter the use of a professional bookkeeper in Singapore always goes through issues of its cost and the possible difficulties of using professional service. Cost of service involves intended expenditures for service when service provides for you. And if you save on bookkeeping costs, eventually you have chances to spend 3 times more time and effort, everything still on all the explanations and inquiries connected with the bookkeeping. The lower the cost of bookkeeping, the longer the work of the bookkeeper looks questionable. When a professional bookkeeper provides services in Singapore, his work efficiency increases due to efficient timing, necessary resources, and sets up the necessary automated processes for the customer’s business processes. You know exactly what profit is before you get it. When you control business costs you automatically increase net profit, accounting, competent management of the company’s finance reduces both material and time resources. The cost of bookkeeping is reduced in the same ratio to the benefits that a professional service has on time control and in reducing costs associated with business processes.
Accurate Financial Records
Today’s bookkeeping software is more intuitive and easier than ever to use. But to utilize these tools, even if you are able to keep reliable bookkeeping records, it takes more time to learn the system. Complex cloud-based or server-based business solutions need regular maintenance, user creation, and invoicing. If you are a small business owner, consider both your time and assets and retain bookkeeping professionals in Singapore. These professionals are ready and trained in Singapore company laws and final goals to keep your business moving and stay on track. Because they use bookkeeping services every day, the pros in professional bookkeeping will accomplish your regular accounting tasks quicker. These bookkeeping pros can save time helping you to focus on the day-to-day work that is genuinely useful for businesses, such as growing or networking.
Many business owners may think they can handle their finances themselves. However, there’s a lot more involved in business financial management than generating profit and getting cash into the company. Professional bookkeeping allows you to see your complete financial picture. When things are running smoothly, it might seem counterintuitive to look at your financial records. That is the perfect time to review them, as the financial health of your business might not feel right under the surface. To manage your business effectively, you should be continuously monitoring business management. Professional bookkeeping firms can provide insightful reports and overviews providing additional accuracy and insight into the health of your business. These professionals can also give you an insight if “meeting” your accountant may be more profitable than “the relationship” with the accountant. The best accountants will often take your books and tax reports and find extra ways to grow your wealth. By employing professional bookkeeping it’s easier for them to do, making them more informative and helpful.
Financial Analysis and Reporting
The availability of timely financial performance reports allows business decision makers to make adequate business assessments. These authoritative findings drive the ability of employees, operatives, and their supervisors to act confidently in making reliable decisions to meet the overall strategic objectives of the company. In the case where the profits of the company are not as projected, the data from feasibility studies help to find the causes. Equipped with this understanding, upper management is in a better situation to make necessary revamps and rectifications, which would bring overall gains for the company. Financial performance in reporting public limited companies has shown that effective financial reporting clarifies the company’s performance, business position, direction, risk forecast, decision-making management, and ownership.
Providing businesses with revenue, cost, profit and loss reports, balance sheets, and other important financial information is the essential function of the Financial Reporting process. These documents are the basis for sound business decision making and facilitate business stability and growth. By utilizing the financial management tools and reports produced, business operators, managers, and owners can formulate plans based on reliable, timely, and cost estimations. In addition, it allows the efficient utilization of resources, the elimination of guesswork, and reliable profit and loss planning that sets direction and guides processes, bringing about sound financial stability. Not only does the availability of the various reports make business operations easier, decisions can be made based on studies derived from the history of the business. Hence, upper management can promote sound operational strategies, implement resource control and business stability, retain motivated employees, and optimize the performance of the organization. Furthermore, entailing an Empty Pockets Syndrome highly influences employee morale, motivation, and attitudes, which in turn affects productivity, resulting in further decline and downturn of any organization.
Compliance with Tax Regulations
Outsourcing services from bookkeeping in Singapore comes with a variety of advantages. Through the use of the right and efficient procedure, it recommends an effective and efficient method in compiling reports. It is imperative to be aware of the GST changes and accounting treatments, for instance, GST-reporting requirements of Ice Cream Plot Company are detailed and require particular attention in reporting its output tax, zero-rating supplies, and exempt supplies. Nonetheless, to create a good filing history and a credit in any future GST refunds, the input tax from local suppliers may, therefore, apply. Further benefits can involve guidance on the validity of its GST report. Consequently, constant and exact reports could then prompt the production of instant management information which can be utilized for administration contemplations. This can result in assurance and the technique used can further demonstrate the entity’s fiscal course.
Companies are mandated to file their taxes. Ideally, utilizing the professional services of bookkeeping in Singapore can ensure a sound and error-free tax filing process. The likelihood of tax penalties and hefty fines can be minimized. Additionally, it promotes compliance and leads to a convincing audit trail. For instance, adhering to Singapore’s regulations on corporate tax is pertinent. By outsourcing these services, proper preparation of financial statements including an actual statement of comprehensive income and a balance sheet, and supplementary schedules and declarations will be executed. This can influence appealing tax exemptions and transparent tax explanations. Revenue authorities can certainly verify the necessary administrative documents for tax purposes. One significant point of contact for the quarterly filing of GST can easily be aligned. Filing on time is a must to avoid fines and penalties from the tax department. Therefore, engaging the right financial service can ensure that the preparation and timely submission needed can be facilitated.
Cost and Time Savings
With cost savings being the top benefit users derived from cloud accounting, coupled with the time and stress savings of automated tracking of transactions such as vendor bills and payments, it is clear that putting professional bookkeeping skills to good use is not a persuading factor only for the business owner or accounting professionals but for auditor services consumers too. Like Finland’s business owner-managers surveyed, professionals who analyzed monthly financial data and mark billable time were able to instantly visualize a workforce reporting project profitability and customer finance. As the Professional Bookkeeping Services Singapore (PBSS) model integrates tightly with Xero and particularly suits early-stage start-ups, choosing to outsource professional bookkeeping becomes one of the most attractive routes to substantial time and cost savings over doing the whole business financial reporting cycle just by oneself.
Research suggests that using professional, external bookkeeping services can free up entrepreneurs to focus on more strategic business activities. determined that small business owner-managers in Finland spent less time on managing their financial functions when they employed professional financial service firms rather than having the tasks done entirely internally. Additionally, male owners and those working full-time in the business spent more time managing finance themselves than those outsourcing some or all financial tasks. As a result, they recommended entrepreneurship training to increase understanding about the benefits of using professional bookkeepers.
Choosing the Right Bookkeeping Service Provider
To further identify selection criteria one can look at the skills which a top bookkeeping firm must possess. These include the fundamental skills as well as less tangible qualities, but which carry high weightage with clients. With clear deliverables and lean lines of communication, SMEs will be able to reinforce the trust and capability to solve issues, as the bookkeeping firm will not be bogged down with clutter which does not serve any real purpose. Providing a means for the client company to have an overview of all their transactions from the comfort of their offices will reduce the psychological burden on the SME owner, as they will have something concrete in black and white. A BPO provider that first of all has accountability for every action, and service levels that provide real-time information any time of the day using a secure internet connection will be seen to be trustworthy. Such a firm should also have clarity in terms of pricing and deliverables and the capability to problem solve and provide IT solutions in the form of reports any time they are required. Finally, they should be able to provide peace of mind to the clients, that all transactions are kept confidential, as well as strike a clear path in terms of providing clear communication lines to ensure that all deliverables are met.
Choosing the right bookkeeping service provider. What key factors do SMEs look for in selecting a bookkeeping service provider? A respondent from the SME sector was chosen to answer the question, to provide insights on the expectations directly from a potential customer. “Comfort level, trust, the capability to deliver what was promised and problem-solving capabilities. IT-based solutions, security, and ethical standards will be other areas which will be important for the more tech-savvy type of users.” Clearly, these key areas allow us to identify some selection criteria when a company is looking for a bookkeeping service provider. A bookkeeping service provider that has simple pricing and clear deliverables creates a guide or user manual that helps remove the ‘fear’ out of ‘unknown territory’. Being able to provide proof of security measures to protect the clients’ data is always a clincher.
Evaluating Experience and Expertise
The computerized accounting systems implemented severely limited the ability of the professionals to perform skilled practices normally described in professional and business literature. In particular, the 142 clients shared that the functionality of the computerized accounting systems limited their ability to prepare cash and liquidity forecasts, management accounts, and different types of MIS reports tailored for business owners, etc. Bookkeeper 1 performs this skilled work for the first 135 clients in Set A in their respective premises through professional bookkeeping methods. They also act as skillful and immediate on-the-spot thinkers. The 350 clients in Set B also did not request these reports, as they only list the exclusive standard range of management accounts and reports that the 135 clients in Set A had agreed to order over the years with Bookkeeper 1. It seems that the formulation of needs for skilled bookkeeping exists within a nested network. The results of the empirical research disturb the accepted understanding that it is possible to separate the perception of needs from the ability to perform the associated supporting function.
Ethnographic analysis revealed that interviewees perceived as indispensable the direct, immediate, professionally skilled work of the bookkeeper. This work is based on the bookkeeper’s years of experience and wealth of related skills. These skills are extracted from the bookkeeper’s body. They include the bookkeeper’s individual and social relationships with the hiring organization and the accounting firm, among others. The interviewees shared that the bookkeeper’s in-situ skills generated organizational and systemic limits and failures in the professional, technological configuration of networks of Bookkeeper 1. This network comprises small to medium-sized businesses in Singapore, over 700 CPAs, 45 accounting firms, and Bookkeeper.
Assessing Technology and Software Capabilities
Technology and assistance from software providers, combined with the use of advanced software features and cloud capabilities, create an enabling environment for users and facilitate them to achieve desired results, offsetting increasing costs due to the growing information technology sector. Cloud computing is further identified as viable technologies, enabling access to valuable infrastructure and software anytime, anywhere. When adopted, it can help modern organizations attain high potential and enhance knowledge management systems. As a result, users of various cloud computing tools report better organizational results and achievements, specifically indicating that reduced costs associated with using cloud computing tools help to make the company even more competitive than others and enhance its capabilities to build business operating ecosystems.
The digital disruption due to COVID-19 was a key element that facilitated digital tools to reduce or even prevent negative economic effects, thus accelerating the implementation of digital technologies and methods in various industries. Besides, others rather mentioned different benefits that come with the COVID-19 disruption, such as fostering creativity and innovation, offering diverse professional development opportunities, and acting as a catalyst for future changes to improve education. Productivity gains and reduced operational costs are commonly recognized direct benefits of digitization. This is then followed by the apparent use of the digital environment to create, interact and share the stock of data, knowledge, and innovation digitally. Moreover, digital technology and present AI and blockchain technologies can empower individuals and communities to protect their data and privacy.
Understanding Service Offerings and Pricing
To determine the charges of professional bookkeepers in Singapore and ensure the content and relevance of the survey, a pilot survey was conducted within bookkeeping firms in Singapore. This survey featured a small number of different service prices being charged. The purpose was to determine which scenarios in a questionnaire are more realistic and to understand the costs of services that professional bookkeepers in Singapore charge for. A pilot survey like this is considered more beneficial than a small sample study conducted through interviews, as the purpose of the pilot survey is to determine the range of prices before conducting a larger survey. The mean prices of the various services offered by professional bookkeepers and the tier levels are also presented in the pilot study.
There are several different types of services that professional bookkeepers offer in Singapore. These services may vary when comparing different bookkeeping firms. The services provided by professional bookkeepers can generally be categorized as follows: consultants, standalone bookkeeping work, advice on digital tools, and more involvement with businesses in providing their services. The pricing for these services can vary. There are four general tiers: “basic bookkeepers,” “learn and do on your own, help if needed” group, “full scope bookkeepers,” and “non-traditional service providers.” The tiers of professional bookkeepers are discussed in further detail in the following section.
Vocational training is required for in-store employees and their policies need to change. Enhance business success by bringing bookkeeping expertise to the business; there are opportunities for local businesses to focus more on their areas of expertise. Employing bookkeeping experts may help business organizations avoid interpreting financial statements and thus be aware of budget allocation and business objectives.
Our main research goal is to determine whether there is a significant relationship between professional bookkeeping in the F&B industry and financially successful companies. This research contributes to the industry and management, providing a clear insight. A company is more likely to be successful if professional bookkeeping is involved. They are also prepared to pay for these activities.
From the F&B industry’s perspective, most business owners often engage their staff to work on mundane tasks, such as bookkeeping, in order to effectively manage costs. Instead of hiring full-time employees, business owners often prefer to work with part-time employees or temporary workers.
As the evidence suggests, successful business owners with proper professional bookkeeping are 20% more likely to fail. However, many SMEs in Singapore, especially the micro-businesses and start-ups (F&B industry), do not employ a professional bookkeeper. The time and cost factors of these businesses have to maintain their own accounting records, mainly due to the high operating costs and shortage of manpower.
